Posted on 03/18/2020 8:15:44 AM PDT by knighthawk
I disagree. You have more people buying not selling.
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All transactions in the market are balanced. You can’t have more buyers then sellers. You only have the agreed price of the transaction.
Shot selling inverts the process allowing one to sell first with a promise to buy back, hopefully at a lower price. The short seller provides market liquidity to smooth the fall in a stocks price in a down market.
I disagree. You have more people buying not selling.
- -
All transactions in the market are balanced. You can’t have more buyers then sellers. You only have the agreed price of the transaction.
Shot selling inverts the process allowing one to sell first with a promise to buy back, hopefully at a lower price. The short seller provides market liquidity to smooth the fall in a stocks price in a down market.
....
Then the uptick rule.
“You don’t close equity markets just because of wild gyrations. It’s best to either ride it out or buy/sell astutely for the short term.”
I suspect that the people who want the market closed still think that the drop in the market is psychological, and if you can break people out of their panic, the market will ride back to 30,000.
But it’s not, it’s REAL this time - driven by an economy that will look far different than the one we had just 2 months ago...with some areas completely shutdown (cruise lines), some areas taking years to recover (travel), and most other areas greatly affected by what will be (and already) is a virtual cut-off of trade with China.
So, the market it just pricing-in the new normal, and, thankfully, it just reached the halfway point of its drop.
“I’m almost all in cash, having been that way for a couple of years. Just hoping we don’t get a dollar devauation.”
That’s also my fear. I’m the same as you, in fact I haven’t had a dime in the market since 2007, before that crash.
But yes, a devaluation in our currency - I can see that coming, as it’s the only way to extract money from our savings.
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